Skip to main content
Calcimator

Transfer Pricing Calculator

Arm's-length pricing analysis for intercompany transactions using OECD CUP, Cost Plus, and Resale Price methods with tax exposure estimation.

Inputs

%
%
%
%

Results

CUP Method Price

$95,000.00

≈ 9 years of state college

Cost Plus Price$75,000.00
Resale Price Method$84,000.00
Arm's-Length Range Low$75,000.00
Arm's-Length Range High$95,000.00
Arm's-Length Median$84,666.67
Deviation from Median (%)18.11%
Within Arm's-Length Range0
Potential Tax Exposure$3,833.33
Effective Markup on Cost (%)66.67%
How to Use This Calculator
  1. Enter Actual Transaction Price ($), Cost Base ($), and Resale Price ($).
  2. Set Comparable Market Price ($), Cost Plus Markup (%), and Resale Gross Margin (%).
  3. Adjust Comparability Adjustment (%), Corporate Tax Rate (%) as needed.
  4. Review the CUP Method Price ($) result.
  5. Use Cost Plus Price ($) and Resale Price Method ($) to inform your decision.

How the result changes with Comparable Market Price ($)

Comparable Market Price ($)CUP Method Price
100,000,000$100,000,000.00
350,000,000$350,000,000.00
650,000,000$650,000,000.00
900,000,000$900,000,000.00

What each input means

Actual Transaction Price ($)
The price actually charged in the intercompany transaction.
Cost Base ($)
Total cost incurred by the supplying entity (for Cost Plus method).
Resale Price ($)
Price at which the product is resold to an unrelated party.
Comparable Market Price ($)
Price observed in comparable uncontrolled transactions (CUP method).
Cost Plus Markup (%)
Standard arm's-length markup on cost (typically 15-40%).
Resale Gross Margin (%)
Gross margin earned by the reseller (typically 20-50%).
Comparability Adjustment (%)
Adjustment to CUP for differences in terms, volume, or geography.
Corporate Tax Rate (%)
Applicable corporate tax rate for exposure calculation.

What each result means

CUP Method Price
Arm's-length price via Comparable Uncontrolled Price method.
Cost Plus Price
Arm's-length price via Cost Plus method.
Resale Price Method
Arm's-length price via Resale Price method.
Arm's-Length Range Low
Lower bound of the interquartile range.
Arm's-Length Range High
Upper bound of the interquartile range.
Arm's-Length Median
Average of the three method prices.
Deviation from Median (%)
How far the actual price deviates from the median.
Within Arm's-Length Range
1 = within range (compliant), 0 = outside range (risk).
Potential Tax Exposure
Estimated additional tax if authorities adjust to median.
Effective Markup on Cost (%)
Actual markup achieved on the cost base.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Actual Transaction Price ($) = 100000, Cost Base ($) = 60000, Resale Price ($) = 120000, Comparable Market Price ($) = 95000 = 8 input(s) provided
  2. Calculate CUP Method Price
    CUP Method Price = comparableMarketPrice * (1 + priceAdjustmentPct / 100)
    95000 = $95,000
  3. Calculate Cost Plus Price
    Cost Plus Price = costBase * (1 + costPlusMarkupPct / 100)
    75000 = $75,000
  4. Calculate Resale Price Method
    Resale Price Method = resalePrice * (1 - resaleGrossMarginPct / 100)
    84000 = $84,000

Engine last updated .

Related Calculators

The questions that sit next to this one — chosen by subject, including calculators filed under a different category.

International Finance

Cross-Border Payment Cost Calculator

Compare total costs across SWIFT wire, SEPA, online transfer services, and card payments including fees and FX spread.

International Finance

Withholding Tax Calculator

Calculate cross-border withholding tax on dividends, interest, and royalties with treaty rate reductions, gross-up costs, and foreign tax credit analysis.

International Finance

Currency Hedging Calculator

Compare forward contract and option hedging costs using covered interest rate parity. Calculate forward rates, hedge costs, and breakeven exchange rates.

More in Budgeting & Personal Finance.